IGI Logo

Below are Quote on Monetary Policy announcement 04th June 2021 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"Monetary policy came completely on expected lines: no change in policy rates, a continuation of the accommodative policy stance and 1% downward revision in FY22 GDP growth rate by 100bp. Governor Das has reiterated that the central bank's priority now is to support growth. That's why the MPC has stated that "the accommodative stance will continue as long as necessary" even while raising the CPI inflation forecast to 5.1% for FY 22 GDP growth rate by 100 bp. The announcement of G-SAP  2.0 to the tune of Rs 1.2 lakh crores will ensure adequate liquidity in the system. On tap liquidity window for contact intensive sectors is an unconventional measure to mitigate the sufferings of segments like hotels, restaurants, tourism, bus operators, beauty parlours, saloons etc. Upward revision of inflation rate will raise bond yields marginally in the short run"

Above views are of the author and not of the website kindly read disclaimer